Saudi Arabia Entertainment And Amusement Market Size

Saudi Arabia Entertainment And Amusement Market Analysis

The Saudi Arabia Entertainment And Amusement Market size is estimated at USD 2.55 billion in 2024, and is expected to reach USD 4.20 billion by 2029, growing at a CAGR of 10.44% during the forecast period (2024-2029).

Due to the COVID-19 pandemic, all major sporting and entertainment events such as shows, concerts, and art exhibitions were disrupted. However, the Kingdom's ambitious expanding lineup of sporting and entertainment events including international events, elite events, regular national competitions as well as other numerous smaller and mass participation events has picked momentum and is expected to increase.

To promote and diversify entertainment opportunities in Saudi Arabia, a royal decree was issued in October 2016, which resulted in the creation of the General Entertainment Authority. The entertainment and amusement industry is one of the fast-developing ones in the country. Before the COVID-19 pandemic, several malls were jam-packed on Fridays with people going to the movie theatres. Several stakeholders are working in the entertainment sector in Saudi Arabia, including GEA, SCTH, the General Culture Authority, and the General Commission for Audiovisual Media (GCAM), tasked with licensing the newly reinstated cinema movies and PIF. GCAM - one of the governing authorities to regulate and operate cinemas, estimates that by 2030 there are going to be 350 cinemas and 2,500 movie screens in the country, as well as an industry worth around USD 1 billion. The kingdom is also aiming to see household spending double from making up 3% of GDP in 2018-19 to 6% in 2030 on entertainment.

The Development and Investment Entertainment Company (DIEC), a subsidiary company of GEA, was launched by PIF in January 2018, with an initial capital of USD 2.6 billion. The company is working with a US partner on a joint venture to operate cinemas in the Kingdom. DIEC expects to open 30-40 cinemas in approximately 15 cities in Saudi Arabia, over the next five years, and a total of 50-100 cinemas in approximately 25 Saudi Arabian cities, by 2030. In addition to AMC Theaters, GEA has signed contracts with Six Flags, National Geographic, Cirque Du Soleil, and IMG Artists, to operate entertainment venues throughout the Kingdom. Major French companies have expressed their desire to open headquarters in Saudi Arabia's capital Riyadh to maximize the benefit of those opportunities. This came during the hosting of the Federation of Saudi Chambers, represented by the Saudi-French Business Council on May 2022, for a delegation of French business owners and companies specialized in various fields of entertainment. The visit is in line with Saudi Vision 2030, which aims to increase the entertainment sector's contribution to 4.2 percent of GDP by 2030 and provide 450,000 job opportunities.